Having the right and most up to date equipment for your business is essential. If you do not have the proper equipment, it can ultimately result in low productivity, not being able to keep up with the demand, and much more. Purchasing equipment or upgrading equipment can be very costly but fortunately equipment financing is available to help. With equipment financing, you can get the equipment you need while growing your business. In this guide you will learn everything you need to know about equipment financing so you can grow your business.
Essentially equipment financing is a type of business loan used for just purchasing equipment. Sometimes lenders will require collateral and typically that piece of equipment will act as collateral and then you do not have to provide a down payment.
Qualifying for equipment financing is easier than other business loans such as term loans or SBA loans. The following are some of the requirements needed to apply:
You may be asked for a business plan and it should include how you plan to use the funds for the equipment and important financial statements such as a balance sheet, cash flow statement, or a profit and loss statement.
Applying for equipment financing can be fast, you can be approved as little as 24 hours and then you will be set to purchase your equipment. In addition, it is flexible as well.
Equipment financing allows you purchase a wide range of your business no matter what type of industry you are in. The following is a list of equipment you can purchase with your funds if you are in the construction industry:
With equipment financing you will be able to purchase these so you can remain competitive in your industry and even expand your market reach.
If your business is in the retail industry, having the most up to date point-of-sale software and hardware is important. If your systems are slow, this can frustrate customers if they are spending too much time at the register trying to check out and might not want to shop at your store again.
Equipment financing allows you have the following tools that are important for running your business such as:
If you own a restaurant business, having certain pieces of equipment can be critical to running your restaurant. The following are some examples of equipment you can purchase with equipment financing:
If you have an office for your business, you will need some equipment and supplies for you and your team which include some of the following:
Technology and software are also important for running any business. If you have competitors who are on the latest software and you are behind, it can hurt your business in the long run. Some examples of what you can use equipment financing for are:
As you can see, no matter what kind of industry you are in there is a lot of uses for equipment financing. However, it comes with its set of advantages and disadvantages.
No matter what industry you are in, you will need equipment at some point in order to keep up with competition and grow. Whichever type of financing you go with, remember to compare all the options available and see which is most appropriate for your businesses’ needs.